editorial
The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has emphasized that Pakistan, while still facing challenges, has made significant strides in strengthening its economy for a follow-up programme. Speaking at an event at the Atlantic Council think tank, Georgieva confirmed that Pakistan was successfully completing the existing nine-month $3 billion stand-by arrangement (SBA) with the IMF and that its economy was performing somewhat better, with reserves now being built up. However, she highlighted that there are several critical areas that the country needs to address. These include increasing the tax base, ensuring that the richer part of society contributes more to the economy, creating a more transparent environment, and directing public spending more effectively.
Georgieva confirmed that Pakistan is in discussions for a follow-up programme to the SBA and reassured that the country is committed to addressing these critical issues. She said, “There are very important issues to be solved in Pakistan: the tax base, how the richer part of society contributes to the economy, the way public spending is being directed and, of course, creating a more transparent environment. The country is turning to the fund for potentially having a follow-up programme, and there is a strong commitment to continue on this path.”
Pakistan and the IMF recently reached a staff-level agreement on the second and last review of the SBA, which, if approved by the IMF board later this month, would have a significant impact on Islamabad’s financial situation. The approval would release about $1.1 billion to Pakistan, a crucial amount considering the country’s external financing requirements for the next fiscal year would be above $25 billion. Pakistan plans to bridge this gap with the help of all the multilateral and some bilateral creditors.
A Pakistani delegation, comprising Federal Finance Minister Muhammad Aurangzeb, State Bank of Pakistan (SBP) Governor Jameel Ahmad, Finance Secretary Imdad Ullah Bosal, and Economic Affairs Division Secretary Dr Kazim Niaz, will also be present in Washington for the IMF-World Bank Spring meetings being held from April 13 to 21. Last week, Pakistan’s Finance Minister was reported to be holding meetings with Georgieva and other senior officials of the IMF and World Bank during his visit to Washington. He was also scheduled to meet with US Assistant Secretary of State for South Asia Donald Lu and the deputy undersecretary of the treasury.
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